follow me on twitter at sam sachs see back here i did. well. it's technology innovation all the latest developments from around russia. the future are covered. welcome to the kaiser report i am max kaiser remember remember it's yet again the fifth of november and banks there's a con man still rule it's been four hundred years that rebuilding sailed for a rope a rope was the last never held and for this reason trees those plots to look bad

indeed it was blankfein the diamond who did these schemes called ponzi contrived to blow the global economy sky high with three quadrillion derivatives lay deep in dark pools that did prove the markets overthrow who want the markets go boom what the economy what are wealth and when the smoke did clear away the tollbooths are here to stay life liberty and the pursuit of happiness speech assembly and association were no longer fricken free all but a dollar a nickel and a dime so remember remember that every fifth of november when we pay warner brothers is compu white till we must drop another penny to the guy they call jamie carney or blight hip hip hooray a penny for the guy stacy herbert yeah roxas the tollbooth economy on the fifth of november the president wants you to get rich on obamacare you being the banks of course this is tom scully in the new york times and he was he

was involved in the introduction of medicare schedule d. which is that trillions to our health care bill in the united states but he was talking to hedge funds and private equity about obamacare and he said it's not a government takeover of medicine it's the privatization of health care you know i call this the digital divide or digital apartheid in america you notice that when it comes to hardware software to run a massive surveillance state run out of the n.s.a. on behalf of the government things seem to work. flawlessly but rolling out a computer program for health care oh it stinks it's full of bugs we have to be rebuilt overly costly the digital apartheid if you live on one side of the apartheid wall like that guy scully then everything works great if you live on the other side of the apartheid wall like ninety eight percent of the american population nothing works and cost too much and you live in a. ghetto. that you can say i was going to say for cox but fortunately i caught myself and i said for cock to. well he's speaking to these hedge fund

managers and private equity guys with billions of dollars and he says he's planning on making billions of dollars off this despite the fact that the mainstream media in america says it's all government run is socialism blah blah blah he says no matter what investors thought about obamacare politically as surely many here do not think of much of it the law was going to make some people very rich the affordable care act he said wasn't simply a law that mandated insurance for the uninsured instead it would fundamentally transform the basic business model of medicine billions could flow from washington to wall street indeed so obamacare he's saying it's like the gunpowder plot of its time and it can consolidate power and wealth. to wall street right the gun powder plot of the time when guy fawkes tried to blow up parliament and we have coming down to us through the ages the fifth of november made famous of course in the movie made by warner brothers call before event that even event did of course

and so here you have a similar gun point plan and you have a similar situation where you've got banks who have replaced health care which could be provided by the state in an affordable way where they're acting like the wal-mart of health care they're buying stuff cheap that they pass on the savings to people no you've got instead as obama explained obamacare a series of exchanges that was your tip off in an era when exchanges are completely corrupted by wall street when every single exchange in the world's manipulated with every single exchange in the world is corrupt and and been infiltrated by terrorists you're an african obama so he's going to take health care and turn it into an exchange what the dodo well as the scully points out is actually the privatization of health care because right now half of the population anyway in america is on the either medicaid or medicare and this is like the beginning of the privatization of health care he says now we're going to look at the energy market

here another market that they are pretending can be a free market and it was owned by the government it was under the auspices of the nec nation up until the ninety's when it was liberalized that's another word they use for privatized energy firms overcharged by three point seven billion pounds a year or so back in the ninety's when they liberalized that the theory the politicians pushed on the population the propaganda was that profit margins would be about one point five percent because the likes of the supermarkets and wal-mart for example operate on a profit margin of two percent so they thought like these guys were going to be super competitive and it was going to reduce to one point five percent well in fact it's like five or six percent profit margin they're operating on. because they have these profitable tollbooths and they were before parliament this week and stephen fitzpatrick who's the c.e.o. of overall energy which is one of the smaller firms is not one of these big six giant well he said after british gas and power s s e scottish power announced

inflation busting increases and household bills fitzpatrick said he quote cannot explain any of these price rises as his company is buying gas for seven percent less than it was two years ago because remember all these big energy firms have increased prices by over nine percent over a one hundred pounds per year on their bills and they're saying that they're coming up with all sorts of explanations but none of it makes sense according to this guy who's basically a whistle blower saying in fact his costs have gone down so he doesn't know why these big guys are going up well it's a mistake to say. transferring management of these assets to the private sector is so called privatization is the transfer of these assets to a dictatorship. who is then imposing oligopolistic behavior and colluding remember those big six energy firms here's the first crimes are guilty it's called collusion

it's a crime they're all guilty of it the one you just mentioned. the other bridge in the energy companies it's called collusion it's a crime they're all guilty of it and i make that charge without any equivocation whatsoever at all well max there's going to be an inquiry to see if that's true because one of these guys called for an inquiry to see if there was competition if he this this guy heading us one of these big six was competing fairly and david cameron seized on that and said yes we must have an inquiry well this is where the david cameron financial illiteracy is important for the dictators that run the energy sector in the u.k. because david cameron can't understand that when prices go up an extraordinarily percentage above any possible inflation metric and when you have on the scale that you have now in an industry that's been convicted in charge and convicted and paid

fines for manipulation. the fact that he needs an inquiry is like somebody needs to help david cameron find his bottom so that he can wipe themself that's what he's saying he's saying i'm so stupid i'm gonna be the stupidest prime minister in the history of britain i'm so stupid that i need an inquiry to get parliament to investigate where my bumhole is because i don't know how do i so that's how friggin stupid david cameron is if you can't see collusion and price manipulation in these big six predatory monopolist in the u.k. he will go down in history as the biggest jackass in the history of british prime ministership bar none knew what he was stupid as david cameron well maybe there will be a bonfire night for him one day in the distant future but you know there was also speaking of bonfire there was a bonfire markets back in two thousand and eight and as a result of that was caused by these fraudulent subprime mortgages and

collateralized debt obligations blowing up the global economy and especially the us well out of that has emerged a new slumlord in america here's what happens when wall street builds a rental empire well basically they have installed tollbooths. to which you have to pay the toll but you actually get no right of passage essential i think it's called a shakedown. hey that's a good way to put it. so there's no escaping the stench of raw sewage called peppers a land area rental home the odor greets her before she turns into her driveway each evening as she returns from work is there when she prepares dinner and only diminishes when she and her husband hunkered down in their bedroom where they now have to eat their meals because david cameron was a visitor there and i made the inquiry describable to figure out how to clean up after what is the toilet so wherever he goes it stinks well he could be for all we

know she rents her home now from colony american the other two big rental firms in america now are invitation homes and american homes for rent these are owned by private equity hedge funds mysterious guys billions and billions and billions of dollars have been spent to buy tens of thousands of homes and now prior to this new wave of tollbooth collectors most homes in america rental homes were owned by individuals so you paid the landlord you knew who he was or she was well here look look look look j.p. morgan just paid a fine multi-billion dollar fine for committing mortgage fraud problem with a mortgage for them the consequence of the mortgage fraud is that people were thrown out of their homes illegally and now hedge funds like the one you just describing have come down and bought all these properties for a hundred percent cash and are now renting them out to folks but there are slumlords or absentee landlords so now america has become a big prison camp an open air prison camp americans become gaza because america and

israel hates gaza so much they become gaza that's the human nature you become what you hate so now merican has become the open air prison of all these countries where they have imposed their drones and their drug kone and livings games to create poverty and destruction that's now visited upon their own heads and that's the karmic cycle. life so get used to it americans you now live in an open air prison paul paul paul well let's look back at the story saying it's like this woman she has a sewage smell because she cannot physically contact the owner the landlord the slumlord they will not answer the phone they do not reply to any letters there is no way for her to contact them there is another guy they talk to the huffington post talked to in the course of this research and this guy also he cannot go to his home because the the sinks in the toilets don't work and they will not fix it because he cannot get in touch with them so what he's done is he's moved into a hotel nearby so it's like the prison systems where the owners of the prisons also

own the nearby hotels because the prisons are out in the middle of nowhere so the families visiting the prisoners have to stay in these hotels which the prison operators also so here these guys are also perhaps maybe owning the hotels thereby it would be worth it because you can't stay in their homes well i call the state sanctioned profitability it's one of several things on wall street that's a guaranteed money maker like rupert murdoch is a big explainer of this you just pull these countries to give them satellite rights of way for broadcasting it's a state sanctioned profit so here you've got the state being bullied into giving hedge funds unlimited housing stock to then rate people as slumlords and then own all the properties around those properties so that you cash in on an unlimited amount of income without putting up a nickel's worth of risk remember these guys if they were free marketeers would be taking some risk but when you've got a gun powder plot to bring this back to the fifth of november of the member remember obamacare there is no recourse because you're looking out twenty

pounds of t.n.t. that's going to explode on wall street unless everyone gives all the banks all their money all right stacy ever thanks for being on the kaiser report thank you max. what's we're coming your way. the emission free accreditation free transport chargers free. range months three risks three stooges high priests non-mainstream blond hair splitting video for your media projects a free media oh god r t dot com. it was terrible they come up very hard to take a plunge again so long as a club like that never had sex with her make their lives let's call it

was. just some. lists. lists lists lists of the people. sleep or not psych to an octave camp at guantanamo or where patients are for settling down for a mass hunger strike never turned the world's attention to the place that summed up

dobbs gulag the hearts and minds. welcome back to the kaiser report imax keyser time now to go to paris and speak with charles you smith of of two minds dot com charles welcome back to the kaiser report thank you max crowd back on the show all right charles he is with you've been blogging about a series of peaks peak jobs peak and tidal moments peak retirement let's talk about peak retirement if i'm a twenty five year old in america will i ever be able to retire charles you spent possibly around the age of ninety three part of it is the demographics of the population and that's just a fancy way of saying that the number of workers is not rising as

fast as the number of people who are entering retirement and so. one measure of that is the ratio of workers to retirees and back in the good old days of the one nine hundred fifty s. and sixty's that ratio was maybe ten to one ten workers for every retiree now the number of full time. workers is to employees is two to one let me let me explain a little bit for viewers in other words in america they have a system of payroll taxes and those taxes go into these programs like well like medicare medicaid social security and but it requires that people have enough jobs and there be enough income from those jobs to keep this what the some call a good ponzi scheme going so what you're saying is that the demographics are such that this good so-called good pontius game is it's it's it's top it can't possibly grow anymore because you don't have enough jobs feeding into the system so if i'm

a twenty five year old right now and i know that when i get to sixty or sixty five or seventy there will be no retirement. for me because the system is fundamentally technically systematically broke and why should i still pay into the system should not be protesting that i don't want to pay into the system because mathematically speaking never see a penny from it charles what we can all hope for is the young generation realizes what you just said and does start protesting and demanding. changes in the entire system such that either they stop paying into a system that they will never. extract any benefit from or the retirees will have to start taking less at least a specially those who can afford to take less right what we're seeing around the world now pension systems are being raided we're seeing bank accounts being confiscated pension of pension systems and pension pots are now hugely rich

target for governments that have run out of money correct that's right and also for wall street which offers these pension funds which need a steady return of about seven percent wall street has offered them very risky deals in order to fund their retirees right so that's another byproduct if you will of zero percent interest rate policies that the fed and the bank of england and other central banks have been pursuing over the past five or six years not only does savers good zero on their savings currently not only does it cause deflation that screws workers but it also is making these pension systems bankrupt because you need at least seven percent as you're saying to keep them funded in a way that works so that when you do it's are you got money but since interest rates are so low these pension funds are becoming bankrupt and before they get

bankrupt states and corporations are now raiding their own pension funds to pay off the folks on the inside who don't seem to have any compunction what so. never about simply stealing money now we had a series of of bubbles charles two smith we've had you have a brilliant chart on your side of detailing this we've had the tech bubble followed by the crash of the tech bubble and then we had the housing bubble and then we had the crash of the housing bubble and now we're in what many clytie yourself call the bond bubble sovereign bond even despite the record supply of bonds are trading at two hundred in the case of britain a three hundred year high. some say that this bond bubble cannot collapse what do you think well max as you've often covered on the show it's all about credit and debt and collateral and so the basic idea of bonds is that

we're going to give you our cash in exchange for a promise of some sort of interest down the road and the collateral of valid is is very the government itself and its ability to tax the economy enough to pay the bonds but i think the real issue is are what's the future of just expanding credit in like and a never ending cycle of we always need more and yet the collateral on which the credit is based is not expanding at all it's we still we're still have the same economy and yet we're we're leveraging an enormous quantities of credit and debt on top of that well let's talk about that the relationship between credit and the number one commodity in the world oil sense the u.s. one on the petro dollar in the early one nine hundred seventy s. you've seen both the energy markets and the credit markets expand almost exponentially because they feed into each other you can't have multi hundred

billion dollar exploration for energy without having an equal and concurrent expansion in the credit markets from the. banks so my question to you charles shoesmith is which is going to be run out first are we going to hit peak oil in a way that is commensurate with the collapse therefore in credit or will we hit peak credit first and therefore there will be no money available to continue exploring for energy and of course a peak credit would look like what we see now which is that governments instead of attempting to solve their fiscal problems simply expand the balance sheet of their central banks to the point where they implode on themselves that would be a peak credit experience and then there's no money to go out and explore for energy but which comes first are also used at the peak oil or peak credit which comes first as

a tough question max but i'll take door number two that the credit bubble will burst before peak energy at least in terms of supply i think the missing ingredient there is what's the cost of that energy. and as you say it requires a huge amount of credit to keep exploring for oil in extreme environments you know we've used up all the easy to get stuff so now it requires a mint sums of money to explore on the further reaches of the energy spectrum but i think we can also go to that old joke about what do you call ten thousand bankers at the bottom of the sea. and the answer of course is a good start so if we want to solve our energy problems maybe we have to tackle the credit bubble first race maybe maybe we're hitting peak banker at some point but let's talk about china where when bankers are caught stealing they are subjected to capital punishment which is

a system that i think would be interesting to be exported to other countries like the u.k. or the u.s. but let's talk about china for a second because of course they are in a mad scramble around the world to secure energy resources they have a huge debt you know pile of money there they've got up to four trillion dollars of cash over a trillion close to two trillion of that is in u.s. dollars they're the world's biggest creditor but they see the writing on the wall here and they've been very aggressively trying to hedge their bets by buying in huge amounts of gold the in anticipation of this day when suddenly you hit the dollar hits its natural end of its natural life every empire every currency actually comes to a bitter end but china as a power are they do you think adequately positioning themselves to live in a post u.s. dollar world oppose us empire world are they making the smart moves charles well

they're certainly making a smart move in as you say there are. attempts to secure oil supplies particularly in africa. as you say their connection between oil and credit and and a growing economy or an economy that's sustainable the those are all linked so to some degree the chinese attempts to secure oil it's almost the equivalent of buying gold in the sense that if you can secure access to oil you've got real wealth ok and however if i'm reading one of your essays correctly you point out that china would not be in a position or doesn't. and to be in a position that of a world reserve currency because it would be a complete u. turn from the current situation of having a surplus of cash to being in deficit correct that's the way i see it some people disagree and say that if china was sold its bonds globally

and sort of opened its economy so that people could buy chinese bonds that that would give the chinese government. the where with all the means to export enough of its currency so the rest of the world would have enough you won or remain be to use for trade because that's basically what we've got here is to have a reserve currency you need about a trillion units of your currency out there in the world for people to use everywhere from street fairs in developing world countries to you know the major industrialized powers everybody needs a lot of of the reserve currency just to transact business some speculate charles that china would not be interested so much in having the world is of currency because it is a lot of infrastructure that's needed you mention the bond market but you also need a swaps market and a hedging mark in the futures market and they would prefer some argue if the dollar

as a reserve currency that role was played by the currency of the i.m.f. which is a special drawing right or the f.d.r. and then china would lobby to have a greater representation on the board of the i.m.f. and that they would be at least equally represented in the global currency market unlike today where they are treated really with almost disdain. by the u.s. and this of course opens up the idea that the ultimate can't kick kicking of the can down the road would be is if the dollar the r. and b. the euro and the yen are rolled up essentially to a special drawing right and then they. i.m.f. becomes the global bank of the world the world's central bank christine legarde would be the ben bernanke he or the janet yellen of planet earth how do you see this scenario playing out well max i think the question we would need to ask is who gets to print that special drawing rights currency and who controls how much of

that is printed and this kind of ties into some of your recent programs on bitcoin and that some of us look at bitcoin and wonder gee what if something the lake bitcoin was the reserve currency in other words a non state nongovernment currency which was not being printed with abandon by a super financial elite and so that may be the larger question is how can we break out of using fear currencies where there i.m.f. chinese american or euro how can we break out of that. system exactly and that's how people like rick fox vignette in arrive at a target price a big lie between a hundred thousand and a million dollars because it would take a sizeable beast of that global four x. market anyway trolls used to throw out of time thanks so much for being on the

kaiser report thank you max and that's going to do it for this edition of the kaiser report with me max kaiser and stacy herbert i'd like to thank our guests charles use of two minds dot com if you like to get in touch please tweet us at kaiser report until next time x. has a thing by you know. what's . ways was no way over. clearly they were just at the wrong place at the wrong time. and sold to the us turned over to the us for. the soul that could be buried alive. was saved with great over. and they wanted to turn me into

a terrorist so if they wanted me to admit that i was a member of al qaeda or taliban or that i fought with them. about time i didn't even know what al qaeda is nevertheless there are people. rave enough to start a fight. or something is going to be done that's going to be done by me and it's been a short amount of time to do it but it's going to impact me i'd be prosecuted but it's going to impact. the wife my daughter. the one time a trap. on our jeep. mission free cretaceous three guns four charges free. range month free. three stooges free. download free broadcast quality video for your media projects

a free media oh don carty dot com. what shaken paypal a maddie martin and this is breaking the set off november fifth which means someone somewhere is voting today somewhere governor races are taking place in virginia new jersey and there are some interesting ballot measures like washington state attempts that requiring g.m.o. labeling jersey voting to raise their minimum wage and there's a marijuana legalization measure on the ballot in four. in maine these are all great initiatives don't get me wrong but what about the measure that openly lets you vote for your favorite corporation or super pac because let's be honest that's what we're really choosing at the voting booths is take a look at this map from mother jones that explains which industry is carrying the most weight.